You wish to purchase a property for $600,000. You intend to make a 20% downpayment and you have the money to do so. You have two mortgage choices. You can finance the remaining 80% with a 30 year fixed rate mortgage at an interest rate of 2.75% with $3000 in closing costs. Alternatively, you can choose a 30 year, 51 ARM with an interest rate of.5%. The ARM has closing costs of $7000. The ARM has an annual cap of 1% and a lifetime cap of 5%. Assume a worst case scenario (for you, the borrower) for interest rates throughout. What is the payment on the fixed rate mortgage? What is the initial payment on the ARM? Multiple Choice $1,795.14 $1,543.87 O $1,82724 $3,457,45